We are excited to announce the launch of the newest basket, the Leveraged ETH Strategy. This innovative basket is designed for individuals seeking to hold Ethereum for a relatively long period and earn 1.8–2x the typical staking yield.

Staking has been made increasingly more accessible through projects like Lido, Rocketpool, and Coinbases’s staked Eth. These primitives have given any user the ability to contribute to the security of the Ethereum network without needing to hold the minimum number of ETH — 32 — required to run a validator. Moreover, these projects have enable liquid

Ethereum staking involves locking up ETH tokens to support the operations of the Ethereum network and earn staking rewards. Leveraging, on the other hand, allows investors to borrow additional stETH tokens against their collateralized ETH, amplifying their staking rewards.

When users stake ETH tokens, they typically earn a return of 4–8%. However, by collateralizing their ETH and borrowing 2–2.5 stETH tokens, investors can multiply their staking rewards to earn 1.8–2 times higher returns. This strategy leverages flash loans and utilizes protocols such as LIDO, Oasis, Compound v2, and Balancer to optimize the yield generation process.

The Leveraged ETH Staking Basket is built on the belief that Ethereum holders should have the opportunity to maximize their staking rewards and generate higher yields for their long-term ETH holdings. By offering this leveraged strategy, Affine provides investors with a unique avenue to amplify their staking rewards and optimize their overall portfolio performance without getting into the technical details .

As of writing, the Leveraged ETH Staking Basket’s backtesting has shown an attractive APY range of between 6% and 10%. This APY is calculated based on the staking yield provided by LIDO and the Compound v2 yield from DAI supply. The basket aims to provide consistent and competitive returns for investors looking to maximize the yield potential of their ETH holdings.

While the Leveraged ETH Staking Basket presents an exciting opportunity, it is essential to consider the associated risks. Investors should be aware that the stETH tokens need to maintain their peg to ETH to avoid potential losses. Additionally, closing the position may involve trading stETH for ETH, which can incur slippage costs due to leverage. It is crucial to carefully evaluate these risks and hold the position for the recommended 6-month to 1-year period.

The launch of the Leveraged ETH Staking Basket marks another milestone in our mission to making DeFi accessible to all. By leveraging flash loans and strategic protocols, investors can now amplify their Ethereum staking rewards and unlock higher yield potential. We encourage users to consider the risks, conduct thorough research, and evaluate their investment goals before participating in this basket. Stay tuned for more updates and explore the Leveraged ETH Staking Basket to optimize your ETH holdings.